Disdvantages of incorporation
Not everyone will benefit from incorporation. For some, repaying personal debts like student loans or a mortgage will mean it doesn't make sense to keep money in the corporation. For others, the cost and time involved in administering the corporation outweigh any tax savings. Here are some of the main disadvantages.
- Increased costs to set up and maintain your corporation
- Additional administration to properly document your corporation's activities
- Certain practice arrangements may limit the benefits of incorporation
